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Royalties for creators

A step-by-step guide to setting royalties on your collection. Pick the rate that works for you, decide whether sellers can flex on it, and you're done.

What you control

On downbad, you set how much of every secondary sale comes back to you. Two things are in your hands:

  • Your default royalty rate — what every new listing in the collection uses.
  • Seller override — whether sellers can pick a different rate at list time.

Both can be changed any time. Existing listings keep their original rate; changes only affect new ones.

Setting it up

1Open your collection

Go to My Collections and click Set Royalty on the collection you want to configure. You'll see your current rate at the top of the page.

2Pick your default rate

Enter any value between 0 and 10 in the Royalty fee (%) input. Fractions are fine (e.g. 2.5). Hit Save and confirm.

This is what every new listing for the collection will use unless the seller picks a different rate (see the next step).

3Decide on seller override (optional)

Scroll to Seller override at the bottom of the page. Flip the switch on if you want to let sellers choose their own royalty rate when they list — up to a maximum (currently 10%).

Leave it off and every listing in your collection must use your default. Most creators leave this off; turn it on only when you have a reason (promos, loyalty events, or just trusting your collectors to pick a rate that works).

That's the whole setup. You don't need to redeploy your collection or touch anything on-chain — the rate flows through automatically the next time someone lists.

What happens after a sale

When someone buys an NFT from your collection, the royalty is paid out the same moment the sale settles. The buyer pays the listed price; the contract splits the payment between the seller, you (the creator), and the marketplace; the NFT changes hands. All in a single on-chain transaction.

Royalties land at the address recorded for your collection (set when you minted it). No claim flow, no waiting period, no monthly batch — you receive each royalty payment immediately, sale by sale.

Changing your rate later

You can update your default at any time by repeating step 2. The new rate applies only to listings created after you save it.

Existing listings keep the rate they were originally listed at. This is by design — once an NFT is listed, the buyer and seller can both see exactly what the royalty will be at sale time, and that number can't move underneath them.

If you want every active listing to switch to your new rate, ask sellers to delist and relist. Or just wait — every existing listing will eventually sell or be cancelled.

Common scenarios

  • Standard setup. Pick a rate you're happy with (5% is a common default), leave seller override off, done.
  • Fee-waiver promo. Temporarily set your rate to 0 (or any low number) for the promo window, then change it back. Only listings made during the window get the lower rate, so the promo cleans itself up automatically as those sell or are cancelled.
  • Loyalty event. Turn on seller override during the event so your top collectors can pick their own (lower) rate when listing. Turn it back off after.
  • Take a step back. Set your rate to 0 and turn override on. Every seller can decide for themselves what to pay you, including nothing.

What sellers see

When a seller opens the List for sale modal on an NFT from your collection:

  • The proceeds breakdown shows them the exact split — your royalty included — in ALGO.
  • If you've enabled seller override, a Custom switch appears next to Creator fees. Flipping it on lets the seller type a percentage of their choosing.
  • A small heart icon on the listing indicates whether the seller honoured your default rate. Useful for spotting which collectors are paying you full royalties.

More on the marketplace

For the bigger picture — why we rebuilt the marketplace contract, what changed from v1, and how cross-marketplace listings work — see The composable marketplace V2.